Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: Cisco who wrote (232)	12/3/1997 1:14:00 AM
From: Colin Cody	Read Replies (2) of 5810

This is no answer to the question. Not until someone takes it to Tax Court, IMO. . The issue is that related-party control entities taking the other side of potential "wash sale" trades cause the loss to be deferred. That's why SOME SAY your IRA, under your control, causes a wash sale to happen. . OTHER PEOPLE, like Tesser referenced here earlier, are likely looking at the EXAMPLES/RULES in the Official IR Regs which spell out some related party entities. Such as: a wholely owned CORPORATION, and a whole list of TRUSTS/Beneficiaries/Trustees. . Nowhere in that list are the words "Individual Retirement Account" found. . So SOME people say since IRA isn't specifically listed as being a related entity, that that means there's no wash sale. . Others say just look at the list as a GUIDE, and obviously IRAs are related if controlled by the taxpayer. . And still others are just repeating "what they heard someplace" (I don't know if Tesser falls in this case, but he does not justify his claim in his book to my knowledge) and still others may figure "let them try to catch me". . Honestly, the ODDS of getting caught using your IRA as the offset are pretty remote, IMO. As a result we have NO CASE LAW on the matter, no one's gotten caught and decided to take it to Tax Court yet... . Colin

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